Using PPP to Improve or Upgrade your Business Tech
Operating a small business has never been more challenging that it has over the past 3 months since the Covid 19 pandemic. Whether your offices remained open or your staff logged in from home, the challenges your company faced by pivoting to remote workstations, cloud-based communications and virtual meetings tested every company’s IT lifeline.
Now that Illinois is beginning to reopen, companies must ask themselves what their new normal will look like. More than likely, your business model will never be quite the same again. If you have taken advantage of the Paycheck Protection Program loans and support from local and federal agencies, you may be finding yourself in a position to make some improvements.
Now is the time to invest in the IT infrastructure you need to protect your business before the next wave of pandemic hits.
The initial phase of the Paycheck Protection Program was devised to help keep as many people employed as possible. When the loan dollars were used for maintaining current employees’ salaries for an 8-week period, up to 75% of the money received qualified as forgivable- like grant funds that do not need to be paid back. The remaining 25% could be used for other business-related expenses like rents, office expenses and utilities for the business.
The second phase of PPP loosened the restrictions on the loan dollars received. For employers who received funds in this phase, 60% of the money needed to be used for payroll in order to be forgiven. A full 40% could then be utilized for other expenses, and the time period for using the funds extended to year end- or approximately 24 weeks.
If the uses for the money do not qualify for forgiveness, the funds would then be considered as a loan and charged a small rate of 1%. A loan at this rate is a boon for small businesses everywhere. Recipients have until December 31st to use the funds with a loan maturity of 1% for 2 to 5 years. You can read more about PPP loan forgiveness from the Small Business Administration here.
The flexibility built into the Phase II PPP program creates a great windfall for small businesses to do the following:
- Improve your network backbone
- Add new cloud-based IP phones
- Purchase new systems & software
- Improve your network security
At Helping Hand IT, we can help you assess your current IT needs and devise a custom-tailored plan for the future needs of your business. Our professionals can help you determine the lifespan of your current hardware, provide the necessary updates and upgrades to keep your systems running and help you upgrade or replace old operating systems that may be slowing down your productivity.
For more information about how Helping Hand IT can help you improve your computer infrastructure and communications systems contact them for a free assessment and consultation by calling 630-940-1718.